Interest rate on Personal Loan

Interest rates for a personal loan vary from borrower to borrower & lender to lender, depending on their individual credit history and amount borrowed. Being unsecured loans, personal loans have a higher interest rate than those on secured 'home and car' loans. At present, many leading banks offer such loans at cheaper interest rates. However, the rate applicable to a borrower is contingent on key factors, including credit score, income level, loan amount and tenure, previous relationship (savings account, loans or credit cards) with the lender, etc. We at RupayaBazaar.com provide you all information regarding personal loan. Thus, we recommend our viewers COMPARE BEFORE APPLY FOR PERSONAL LOAN .

FAQ on Personal Loan

Most of the nationalized, foreign and co-operative banks offer personal loans. Besides banks, some other finance companies and financial institutions also offer them. For more information, visit our product browser section.

The period varies widely; some lenders usually permit repayment up to a maximum of 60 months. However, most lenders restrict the tenure to a maximum period of 36 months. For specific information, visit our product browser section.

Loan eligibility is dependent on primarily the following factors:
1. The company where you work. Every bank has a list of companies running into thousands which they have categorised into segments like A, B, C etc depending on the credentials and financials of your employer. The higher the category the higher is the loan eligibility chances.
2. Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current personal loan that your are trying to apply for) exceeds 50-75% of your total net take home salary.
3. Your gross/net salary
4. Your credit score as reflected in your CIBIL or Equifax report. Having a good credit score is a necessary but not a sufficient criteria.

a. Salaried individuals
b. Self-employed professionals
c. Self-employed non-professionals
d. Any salaried individual/self-employed professional is eligible for a personal loan and the amount of loan eligibility will differ based on the person’s current earnings.

Repayment of a personal loan is done by issuing post-dated cheques for the entire tenure of the contract. The amount of the post-dated cheque would be the EMI i.e. equated monthly installment. Some lenders also permit repayment option by way of standing instructions to your bank account or deduction at source from your salary every month.